Advertisement
Advertisement
Hutchison Whampoa
Get more with myNEWS
A personalised news feed of stories that matter to you
Learn more

Li Ka-shing ups Spotify bet ahead of US launch

Telecoms and property mogul Li Ka-shing has increased his bet on Spotify, the popular European online music service that is poised to expand in the United States.

Li, the chairman of Hutchison Whampoa and Cheung Kong (Holdings), took part in Spotify's new US$100 million round of financing that was completed last month. This followed his initial investment in the Swedish company in 2009.

The Li Ka-shing Foundation, Li's charitable institution, confirmed his participation to the South China Morning Post, but declined to reveal the size of the investment or stake.

'We still have one seat on the board,' a spokeswoman for the foundation said.

Frank Meehan, CEO of London-based INQ Mobile, the mobile phone manufacturing arm of Hutchison, sits on Spotify's board. The Hutchison subsidiary has commercial agreements with the Swedish firm.

'INQ and Spotify have joint marketing promotions in the UK,' the foundation spokeswoman said. 'Spotify also comes pre-loaded on some of INQ's handsets.'

Founded in April 2006 by Swedish entrepreneurs Daniel Ek and Martin Lorentzon, Spotify is a free music-streaming service that offers access to more than 13 million songs via mobile phone or personal computer.

The online advertising-supported service provider, which has about 10 million registered users, garnered a valuation of US$1 billion after its latest funding round. Its 'premium' and 'unlimited monthly' subscription programmes have a total of about one million paying members.

The additional funding secured by Spotify is expected to help it establish operations in the US. Its service is currently available in Britain, France, Spain, the Netherlands, Norway, Finland and Sweden.

That expansion plan appeared to be imminent after the company posted a teaser on its website last week that said: 'Spotify is coming to the US.' The company is also accepting e-mail addresses from US residents interested in testing the service.

A Spotify spokeswoman refused to comment on the US launch.

Post